# Nasdaq drops 1% as tech stocks fall

> Tech stocks tumble as Nasdaq falls 1% amid AI concerns.
- Title: Nasdaq drops 1% as tech stocks fall · CNBC | Shortify
- Summary: Tech stocks tumble as Nasdaq falls 1% amid AI concerns. Nasdaq Composite dropped 1.07% to 25,164.32 as investors shifted from tech to other sectors after AI…
- Keywords: nasdaq, tech stocks, ai spending, s&p 500, dow jones, oil prices, midterms, oracle, marvell, lumentum, business, finance
- Source: CNBC — https://cnbc.com/2026/11/01/stock-market-today-live-updates.html
- Author: Sean Conlon,Liz Napolitano,Hugh Leask,Justina Lee
- Published: 2026-11-01T23:01:35+00:00
- Read time: 2 min
- Topics: nasdaq, tech stocks, ai spending, s&p 500, dow jones, oil prices, midterms, oracle, marvell, lumentum, business, finance
## Market moves
The Nasdaq Composite and S&P 500 fell on Monday, giving up earlier gains as investors moved out of tech stocks.
## Indices drop
The tech-heavy Nasdaq dipped 1.07% to end at 25,164.32, while the S&P 500 shed 0.51% to close at 7,541.40.
## Dow outperforms
The Dow Jones Industrial Average rose 213.67 points, or 0.41%, to 51,983.98, outperforming tech indices.
## Tech sell-off
Nvidia and Meta Platforms each dropped 1%, Apple closed nearly 2% lower, and Marvell Technology shares fell 13%.
## Lumentum deal
Marvell Technology agreed to buy Lumentum in a $115 billion deal, creating a major AI data center focus.
## Oracle's move
Oracle plans to sell $10 billion in common stock and $10 billion in bonds to finance its AI buildout.
## Oil prices fall
Brent crude tumbled 7.63% to close at $104.77 per barrel as U.S. and Iran may resume peace talks.
## Midterms approach
The U.S. midterm elections will be held on Tuesday, with Democrats expected to take control of the House of Representatives.
## Market rotation
Investors rotated into defensive sectors like healthcare as tech stocks faced AI spending concerns.
## Oracle upgrade
Stephens upgraded Oracle to overweight from equal weight, citing strong AI execution and growth potential.
## Tech volatility
The Nasdaq-100 slid roughly 8% since Deutsche Bank downgraded it to neutral, with a potential reversal expected.
## ISM manufacturing
The ISM manufacturing index increased to 55.5, showing U.S. factory activity accelerated in October.
## Amazon AI spending
PhillipCapital upgraded Amazon to buy, predicting AI investments will pay off long-term despite short-term cash flow issues.
## Oil price drop
Brent crude fell 7.63% to $104.77 per barrel amid hopes of U.S.-Iran peace talks.
## European markets
European stock markets started November in the red, with travel and leisure stocks moving higher.
## Market reaction
The market's longer-term bullish narrative remains intact despite short-term volatility from AI spending concerns.
## Key takeaway

Nasdaq Composite dropped 1.07% to 25,164.32 as investors shifted from tech to other sectors after AI spending worries.